2017 Return Due Dates under the PATH Act
The Protecting Americans from Tax Hikes (PATH) Act of 2015, made major changes to tax and information return filing dates. The rationale behind the accelerated return due dates is streamlining the tax return filing information and strenghtening the IRS identity theft prevention and detection efforts. Most of the changes are effective for tax and information returns due in 2017. How the new return due dates affect you and your business?
Individual Tax & Information Return Due Dates
The regular unextended individual tax return date of April 15th remains unchanged. The law provides that if April 15th falls during the weekend or on a public holiday, the return is due the next working day. The Emancipation Day observed in D.C. falls on Monday, thus the 2016 income tax returns must be filed on or before April 18th, 2017. The IRS has also announced that internal processing of tax returns starts on January 23rd of 2017 and most tax refunds will be released within 21 days of submission if the return is filed electronically.
However, the early release of certain refunds is affected by the PATH Act. Taxpayers who claim the Earned Income Tax Credit (EIC), the American Opportunity Tax Credit (AOTC), or the refundable portion of the Child Tax Credit (CTC) will receive tax refunds by the end of February at earliest. The longer processing period gives IRS more time to match the information reported by the taxpayer with information provided by employers.
Another revision affects the retroactive claims of the refundable EIC, AOTC, and the CTC. Sections 204-206 of the PATH Act stipulate that these credits will not be released if any of the tax numbers used on the return is issued after the tax return due date. As a consequence, taxpayers claiming the above credits must ensure a valid SSN or ITIN is secured on or before the tax return due date, including extensions.
The Foreign Bank Account Report (FBAR) filing date has also been revamped. In 2017 and subsequent years, the FBAR must be filed by the regular unextended tax return due date of the taxpayer filing the form. Therefore, FBARs filed by individuals must be received by April 18th, 2017. An automatic 2-month extension of time to file is granted to expatriates and Americans residing overseas on the regular due date. A 6-month extension is also available if filed before April 18th, 2017.
Business Tax & Information Return Due Dates
Section 201 of the PATH Act provides that W-2 and 1099-MISC forms reporting nonemployee compensation in box 7 (self-employment income) must be filed by the payer no later than January 31st of 2017. In result, most taxpayers will receive income statements early this year. The accelerated reporting also gives IRS more time to match taxpayer information.
Alternations apply to filing a Partnership, Corporate, and Tax-Exempt entity returns. The 1065 Partnership Tax Return is now due March 15th and a new 6-month extension has been established. The 1120 C-Corporation tax returns are postponed for corporations with a fiscal year end other than December 31st or June 30th. These corporations are required to file by the end of the 4th month after fiscal year end. A 6-month extension is also available.
Finally, tax-exempt organizations filing Form 990 must do so by May 15th. A single 6-month extension eliminates the previously available 90-day extension. The table below summarizes the changes and compares the prior to current law due dates for various returns.
2017 Return Due Dates per Type of Return
|Return Type||Prior law due date||Regular due date under PATH Act||Extension under PATH Act||Notes|
|All Forms 1040 - Individual Tax Return||April 15th||April 15th||6-month extension||No change. In 2017 file by April 18th due to a public holiday in D.C.|
|Form 1120 for a C-Corp with a fiscal year end other than Dec 31st or June 15th||15th day of the 3rd month after fiscal year end||15th day of the 4th month after fiscal year end||6-month extension||Return filing postponed by a month|
|Form 1120 for a C-Corp with a fiscal year ending on December 31st||March 15th||March 15th||6-month extension||Subject to a change for tax years ending on or after December 31st, 2025|
|Form 1120 for a C-Corp with a fiscal year ending on June 30th||September 15th||September 15th||6-month extension||Subject to a change for tax years ending on or after December 31st, 2025|
|Form 1120-S for an S-Corporation||March 15th||March 15th||6-month extension||No change|
|Form 1065 – Partnership Return||April 15th||March 15th||6-month extension||The 1065 return is due by the 15th day of the 3rd month after year end|
|Form 1041 - Trust and Estate||April 15th||April 15th||5½-month extension||There is a new extension of 5 and a half months|
|Form 990 - Tax-Exempt Organizations||May 15th||May 15th||6-month extension||The previous 90-day extension has been discontinued|
|Form 3520-A for a Foreign Trust with U.S. owner||March 15th||March 15th||6-month extension||No change|
|FBAR - FinCEN Report 114 (individuals)||June 30th||April 15th||6-month extension||File by the return due date. New 6-month extension available|
|Information Returns (W-2 and 1099s)||Feb 28th and March 31st if filed electronically||Forms W-2 and certain 1099-MISC due by Jan 31st||New safe harbor available for de minimis errors (Sec. 202 of the PATH Act)||No change for all other Forms 1099 due Feb 28th and March 31st if filed electronically|